When the Market Falls, I Do This
A few tips for the red days
Investing in cryptocurrency takes grit.
I know this is something I talk about often, but it bears repeating. You have to fight through wild swings in order to make big gains. Not everyone manages to do this, and few do it well. We got a reminder of how hard it is this week. In fact, reminders about it come most weeks.
I’m still getting used to the up and down of the market myself, and I’ll readily admit to anyone that there are days when it exhausts me. Big green days give me a dopamine rush I wish would stay forever, and bloody red days can sometimes make me question every investment I’ve ever made.
But as I’ve said before, I’m in this sector for the long haul. The money I’ve invested is cash I don’t need right now. So, on red days, I do a few things.
Check my “blue chip” investments for opportunities. For me, the “blue chip” cryptos are Bitcoin, and Algorand, both of which I believe will be around for decades and decades. For you, the blue chip ones might be a different basket. Either way, when the market is down, you find entry points with these currencies that are attractive to you. Keep your eyes open.
Revisit my goals. While my portfolio is for the long term, not all my investments are. If a position isn’t performing, it’s okay to get out of it and swap it for something else.
Check long-term charts. I told a friend to do this the other day when she panicked over the recent drop. Sometimes, it helps to “zoom out” to see what is really going on. Looking at a three month, six month, or one year trend can be illuminating, and reassuring.
Consider my other financial commitments. Crypto is just one way I am investing my money for the future. Revisiting my other investments isn’t a bad way to pass the time.
Close the trading app and move on about my day. If you stare at the markets all day every day, you’ll go nuts. And that is not the point of all this. The point is to secure financial freedom, more time with family, and a lifestyle that allows you to take back the most important commodity of all—your time. So, taking a break from the market is merited. This is a marathon.
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.